In 1971, someone first registered the term UGH-BOOT as a trademark in Australia. The trademark lapsed due to non use. In 1999 the American outdoor company Deckers registered the term UGG Australia in 1999. By the early 2000's the boot became widely popular being worn by celebrities and become sought after all over the world. As a result Deckers became more protective of their brand and began issuing legal threats against over companies in Australia who were using terms similar to UGG such as UGH.
In 2006 a competitor of Deckers, Uggs-N-Rugs, succeeded in having UG, UGG and UGH Boots removed from the Australian Trade marks Registry. The Registry decided that the term was generic and used to describe a specific type of sheepskin boot in Australia. Deckers did not appeal this decision. They still have retained their marks in the EU and the US and competitors in those countries can not market their boots as Uggs but instead must market them as Australian Sheepskin boots.
One of the more interesting aspects of the case is that competitors of Deckers are focusing on the fact that UGG boots are made in China and not Australia. They promote themselves as being the Australian made boots and focus on the fact that Deckers are made in China. In essence they are trying to change UGG into more of a regional mark like Champagne. They want consumers to associate UGGS with a particular type of sheepskin boot being made in Australia and not a trade mark which indicates they are made by Deckers.